On the reverse of a weak daily performance, utmost brokerages see if delicate for Hcl Tech to deliver on its FY24 profit growth guidance of 6- 8 percent HCL Technologies’ Q1 figures missed the Street’s prospects on all three fronts of profit, profit, and profitability.

Shares of information technology major HCL Technologies tumbled over 2 percent in early trade on July 13, a day after the company reported a disappointing set of earnings for the April- June quarter.

The IT major’s Q1 earnings missed the Street’s estimate on all three fronts of profit, and profitability. Indeed though the company recorded a 7.6 percent time-on-time growth in net profit for the April- June quarter to Rs 3,534 crore, it witnessed a decline of 11.2 percent successionally.

The bottomline was also below judges’ estimate of Rs 3,782 crore for the quarter under review, dragged down by retardation in deals and verticals like Hi-tech and telecom The topline also missed the estimate of Rs 26,858 crore as it came at Rs 26,296 crore, over 12 percent on time.

On a successional basis, profit also slipped1.2 percent Earnings Before Interest duty( EBIT) perimeters came at16.9 percent, also below the read17.7 percent. On a successional base as well, it was 130 base points lower than the the18.2 percent recorded in the former quarter Tracking the weaker-than-anticipated earnings of India’s third largest IT services establishment, brokerages have also sacrificed caution for the coming diggings Global exploration and boking establishment Bernstein, which has a’ request- perform’ standing for HCL Tech with a price target of Rs 1,000 believes the company’s guidance remains at threat following the weaker- than- anticipated Q1 earnings.

HCL Tech has given a YoY profit growth guidance of 6- 8 percent for FY24, compared to 12- 14 percent in FY22- 23. still, Bernstein feels the guidance is at threat as it expects a CAGR( Compounded periodic growth rate) of 3.2 percent for the IT company in a delicate macro terrain.

Nomura also seconded that view as it believes that achieving the top end of the growth guidance could be challenging for the company. also, the establishment also lowered its FY24- 25 EPS estimate for HCL Tech by 1 percent to factor in the earnings miss in Q1. The brokerage has a neutral’ standing for HCL Tech with a price target of Rs 1,090 per share.

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